US EditionCheaper for Britons to Rent than Buy After Mortgage Rates Rise ‘Sharply’
Rightmove said rising borrowing costs pushed average monthly mortgage payments to £1,670, or £123 more than the typical advertised rent.
- For the first time since June last year, the cost of a typical new mortgage payment has overtaken the average rent across Britain, according to Rightmove analysis.
- Market volatility related to Middle East conflict pushed borrowing costs higher, driving the average two-year fixed mortgage rate to 5.35% in April from 4.24% in February.
- Rightmove data shows the average advertised monthly rent is £1,547, which is £123 less than the average new monthly mortgage payment of £1,670, assuming a 20% deposit and 30-year term.
- Regional disparities persist: the South East sees rents £304 cheaper than mortgages, while the North West remains £7 cheaper to rent, reflecting broader affordability challenges noted by Propertymark CEO Nathan Emerson.
- Rightmove property expert Colleen Babcock suggested prospective buyers may turn to renting temporarily while rates remain high, though renting may not be more affordable overall given limited housing supply.
13 Articles
13 Articles
Renting now cheaper than a mortgage, says Rightmove
Renting is now cheaper than buying for the first time since June 2025, Rightmove says, reflecting the recent rise in mortgage rates. Rightmove said that the average advertised rent in Great Britain is now £1,547 a month, whereas the typical monthly mortgage payment is £1,670.… The post Renting now cheaper than a mortgage, says Rightmove appeared first on Mortgage Finance Gazette.
Higher mortgage rates push repayments above the cost of renting - Credit Connect
Latest data from Rightmove has found that higher mortgage rates have pushed monthly repayments above the cost of renting for the first time since June 2025. The average advertised monthly rent across the UK is currently £1,547, compared to an average new monthly mortgage payment of £1,670. Rightmove used the current average asking price for a home of £373,971 and the average two-year fixed rate so far in April of 5.35% to calculate the average m…
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